Microsoft boosted by OpenAI stake finalization
On Tuesday, Apple and Microsoft shares both rose, briefly pushing their market capitalizations over the $4 trillion threshold. While Microsoft held its position above the milestone, Apple closed just below it. The rally placed both tech giants right behind Nvidia, which remains the world’s most valuable company with a market cap exceeding $4.6 trillion.
Microsoft’s stock gained roughly 2% after news emerged that it had finalized a 27% stake in OpenAI’s for-profit business. The company has been a key backer of OpenAI since 2019, and the move confirms Microsoft’s long-term commitment to artificial intelligence. The investment comes amid a broader push to expand its cloud and AI offerings through partnerships and internal development.
Apple’s momentum driven by strong iPhone sales
For Apple, the milestone reflected growing investor confidence in the performance of its latest iPhone models. The iPhone 17 lineup, released in September, appears to be outpacing sales of previous versions, fueling a 25% rise in the stock over the past three months. This marks a significant rebound for Apple, which had faced questions about slowing device demand earlier in the year.
JPMorgan analyst Samik Chatterjee noted in a recent report that Apple shares are “heading into the upcoming earnings print with a greater halo of positivity than any time in the past year.” Chatterjee, who maintains a buy rating on the stock, raised his price target to $290 per share. Apple is scheduled to report its fiscal fourth-quarter earnings on Thursday.
Supply chain shifts reduce tariff exposure
Beyond product sales, Apple’s strategic decisions around manufacturing have helped ease investor concerns about trade policy. The company has moved a significant portion of its U.S.-bound supply chain out of China, shifting production to countries like India and Vietnam. Analysts suggest that this realignment has improved Apple’s position amid ongoing uncertainty around U.S. tariffs.
According to Chatterjee, the combination of increased domestic investment and rapid diversification away from China has strengthened Apple’s ability to navigate shifting global trade dynamics. Maintaining open lines of communication with the U.S. administration has also contributed to a more favorable outlook.
Tech giants head into earnings season strong
Both companies are entering earnings season with momentum. Microsoft, up 6% over the past three months, is set to report earnings on Wednesday. Apple’s strong stock performance and resilient product sales suggest investor optimism heading into its Thursday report.
The $4 trillion valuation club, though symbolic, underscores the continued dominance of mega-cap tech in global markets. While Nvidia holds the top spot for now, Apple and Microsoft remain formidable players with diversified growth strategies in AI, hardware, cloud computing, and services
